Malaysia has made refinements in VEP application process, but room for improvement remains, say analysts

JOHOR BAHRU: With around two months to go before Malaysia’s Vehicle Entry Permit (VEP) enforcement deadline, complaints among Singaporean drivers over the application process remain unabated, with industry observers telling CNA that there is still room for improvement. 

At the same time, these observers called for Singapore drivers who have expressed frustration over the process to exercise more patience and realise that the administrative system may not be as efficient and intuitive as what they are used to on their side of the Causeway. 

Following the news that Malaysia would implement the mandatory VEP for all foreign vehicles entering the country, CNA received around a dozen emailed queries from readers highlighting issues they faced in the registration process.

This came off the back of the Malaysian government’s announcement confirming that the VEP initiative will be enforced from Oct 1 and an FAQ released by Malaysia’s Road Transport Department (JPJ) spelling out requirements as well as steps drivers need to take to complete the registration process. 

The process involves submitting particulars on a portal and fitting a radio frequency identification (RFID) tag on the car, which can be posted to the driver’s address in Singapore. 

Many drivers who spoke to CNA expressed frustration with the uncertainty and challenges. They have also spoken out about the long waiting times they have experienced when attempting to contact Malaysian authorities. 

Some had recently bought a used car but were unable to register for VEP as their car was registered under a previous owner. Other drivers were concerned that they would have to share personal documents such as a copy of their identity card and the vehicle’s certificate of entitlement with Malaysian authorities. 

One driver, who applied for his VEP in 2019, said that he was unable to renew his licence on the JPJ portal before its imminent expiration. 

“It should be much easier for me to extend it and not be left to worry about this,” he told CNA last month. 

One rental car company based in Singapore, which is aiming for its fleet to be VEP-registered, told CNA that JPJ requires that each vehicle be tied to a TouchNGo e-wallet. This would mean a heavy administrative load for the company, as it would have to open an e-wallet account for each car.  

Mr Desmond Chan, editor at Singapore online car marketplace Sgcarmart, told CNA that the Malaysia government has already made refinements to the application process since the VEP was first introduced before the COVID-19 pandemic but he maintained that there are still gaps and areas for improvement.

“I think there’s a certain level of expectations from Singaporeans that the administrative process goes very smoothly. But based on feedback we have received (from drivers), the process is better than what it was originally.

"It's a bit more streamlined but it's not perfect and that can maybe frustrate some people,” said Mr Chan. 

He noted that before the pandemic, drivers would need to physically report to a tagging centre in Johor Bahru for their RFID tags to be installed to their vehicles - but he noted that since the enforcement was announced in late May, Malaysian authorities have offered the option of posting the tags directly to the owners. 

Additionally, Malaysian transport minister Anthony Loke announced a series of further refinements on Jul 1 - such as how those getting a VEP for a second-hand vehicle may now apply to deregister a pre-existing VEP for that vehicle online instead of going to a physical counter.

The number of personnel handling email enquiries increased from five to 15, and those at the VEP collection centre in Johor from seven to 12. 

However, Mr Chan added that in spite of these refinements, some drivers have not received replies from JPJ and this group included used car drivers. 

“I think clarity of information and how information is disseminated - this can be improved. For instance, for used car owners - they are still in the process of resolving that,” he said.

Malaysia automotive industry analyst Hezeri Samsuri, who is managing editor of automotive news platform Careta Media, told CNA that the volume of enquiries for JPJ to handle is high so it might be difficult for them to “handle the administrative load”. 

Earlier this month, Mr Loke said Malaysia has received more than 23,000 applications since May 28, when it first announced the VEP deadline. He added that the 23,649 VEP applications received from May 28 to Jun 29 exceeded the 15,424 applications for the whole of 2023. 

“I think it can be quite challenging for JPJ to reply to all emails quickly so drivers should be patient. I think they can come down in person to the JPJ office and speak to officials there directly if they want to resolve them quickly,” said Mr Hezeri.

JPJ has appointed a vendor company - TCSens - which has an office in Danga Bay, Johor Bahru to handle queries from Singapore drivers. 

When CNA visited the TCsens office last month, there was a crowd of around 40 people waiting for their turn after collecting a queue ticket. Some expressed dissatisfaction over long waiting times. 

Sgcarmart’s Mr Chan urged drivers from Singapore to acknowledge that Malaysia has a “different administrative process”.

“I think it's very easy to take for granted that we are used to the Singapore way of doing things which is very clear, (the steps are clearly) dictated. When it comes to dealing with Malaysia authorities, there’s inevitably going to be a gap,” said Mr Chan. 

“I do think it's probably prudent for Singaporeans to maybe exercise a little bit more patience. I don’t think we are very patient people in general so I think that probably comes into it,” he added. 

“PART OF CO-EXISTING WITH A NEIGHBOUR” 

Observers also noted that it was important that Singapore drivers respect and adhere to the policy changes around the VEP, especially since Singapore has enforced VEP for Malaysian vehicles as well.

The Singapore government requires Malaysian motorists to have a valid VEP for the duration of their stay in Singapore.

They are required to do so by applying on Singapore’s Land Transport Authority’s One Motoring website and submitting documents such as their passport, vehicle registration certificate and vehicle insurance.

VEP fees are waived for the first 10 days but motorists are then required to pay S$35 (US$26.03) each day the car is in Singapore thereafter.

Mr Hezeri noted that Malaysians who work in Singapore have been required to apply for the VEP when they use their private vehicles to travel over, and that Singaporeans should understand that this is not a new concept.

“VEP is not just used by the Malaysia government to collect fines from errant Singapore drivers, but it is used for urban planning, to monitor the quantity of cars that has entered the country,” said Mr Hezeri. 

“It is also used to safeguard our borders,” he added. 

Mr Chan stressed that Singapore drivers must deal with this extra layer of enforcement because as visitors and tourists, they must adhere to changes in policy Malaysia has imposed. 

He noted that the frustrations from Singapore drivers partly come from the fact that the Malaysia government had wanted to enforce VEP at various points over the last decade, but that there had been elements postponing it each time. 

Malaysia initially wanted to implement the VEP in October 2017 under then-transport minister Liow Tiong Lai. However, the implementation of the scheme has since been delayed several times due to technical issues with the portal and poor implementation at the land checkpoints during a pilot project which resulted in congestion.  

These previous delays have set a precedent for some frustrated Singaporean drivers. 

“If you look at the history of how Malaysia keeps wanting to implement VEP, but then keeps postponing, it has been a flop, and this time might be a flop again,” said Mr Ben Lee, a 49-year-old technical salesperson, who spoke to CNA in June. 

However, Mr Chan takes a different view.

“I think that there might be a certain element of shock or discomfort - that now I have to deal with this extra step. But I think the truth of the matter is that this is part of co-existing with a neighbour,” he said. 

“I don't think (Singapore drivers) should feel encumbered just because they have one more thing to do with (their) lives. Because if that's the decision the Malaysia government makes, and as Singaporeans, we want to enter Malaysia, we have to adhere to these requirements as well,” he added.